'Regulatory Technology for the 21st Century' whitepaper

Suade, RegTech provider and member of the World Economic Forum's Global Innovators community, is a long running member of the Global Future Council and contributed to this work. The whitepaper explores the application of new technology solutions to tackle regulatory governance, reporting, compliance, and risk management obligations.

The key contributors to this work included Suade, IBM, Apolitical, Deloitte and the Ministry of Communications and Information of Singapore. As a member of the Council and with expertise in developing regulatory technology using Artificial Intelligence (AI) and Machine Learning (ML), Suade provided industry knowledge on the importance of open-source data standards for regulatory compliance, such as FIRE (Financial Regulation). FIRE, created in 2014, is the only global open-source data standard for financial firms and regulator communities. Recognised by the World Economic Forum, FIRE is a mechanism that harmonises data at any level of granularity, across multiple reporting jurisdictions, globally. Suade has built a formal data governance structure to ensure that the evolution of FIRE is conducted responsibly and sustainably.

The cost and complexities of compliance is rising, and regulators require more transparency than ever before. This, combined with the accelerated pace of technology usage among many sectors has led to rapid growth of the RegTech market. RegTech enhances timely regulatory compliance and mitigates risks in a transparent and auditable manner. It automates lengthy, time-consuming processes, reducing room for error and the need for manual work and costly resources.

The application of modern technologies like AI, Machine Learning and Natural Language Processing improves efficiency in regulatory compliance teams within firms and at the regulatory level. With RegTech, industry players, including regulators, can adapt quickly to regulatory change.

Diana Paredes, CEO and Co-Founder, Suade, commented: “Challenging economic conditions, the need for financial stability and operational resilience, and environmental, social and governance (ESG) concerns are influencing regulatory agendas around the globe. This study builds on the Public-Private cooperation that is key to creating a more agile regulatory environment with contributions from regulators, policy makers, and regulated organisations. As a voice for RegTech at the Forum, we are honoured to participate in this study to demonstrate the benefits of RegTech and Agile Governance.”